Efficient Market Hypothesis and Behavioural Finance

Title: Efficient Market Hypothesis and Behavioural Finance
Category: Business & Economy
Details: Words: 2671 | Pages: 11.4 (approximately 235 words/page)

Efficient Market Hypothesis and Behavioural Finance

Efficient Market Hypothesis The efficient market hypothesis (EMH) is a belief that financial asset markets are fully efficient and thus correctly reflect all information. It evolved in the wake of work by Kendall (1953). He found price seemed to follow random walks, so that future price changes could not be predicted on the basis of past prices. The importance of news for asset prices led to the idea of the EMH. Definition The efficient markets hypothesis (…showed first 75 words of 2671 total…

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…showed last 75 words of 2671 total…gt;Peyton Foster Roden & George A. Christy. (1986). Finance - environment and decisions. Harper & Row. (7)<Tab/>Richard A. Brealey. Stewart C. Myers & Alan J. Marcus. (1999: 2nd Ed.). Fundamentals of Corporate Finance. McGraw-Hill. (8)<Tab/>Steve Lumby & Chris Jones. (1999: 6th Ed.). Investment Appraisal & Financial Decisions. London: International Thomson Business Press. (9)<Tab/>http://www.behaviouralfinance.net/index.html

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